Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry on Thursday directed port authorities to implement a 30-day plan to shift, auction, and dispose of stuck-up containers at Karachi Port, as a historic surge in transshipment cargo following Gulf route disruptions pushes the port toward its operational limits. The directive, issued after Chaudhry chaired a sub-committee review meeting in Islamabad, comes as Karachi Port processed 8,313 TEUs of transshipment cargo in just the first 24 days of March 2026 — matching its entire annual transshipment volume from all of 2025.
What the Minister Ordered
Chaudhry directed the Karachi Port Trust (KPT) to obtain detailed shifting plans from all terminal operators and submit them to the sub-committee and customs authorities by week’s end, according to a Ministry of Maritime Affairs press release (PR No. 16) issued on Thursday.
The minister instructed relevant authorities to transfer stuck-up containers and surplus materials from on-dock areas to designated off-dock facilities within the 30-day timeframe, stressing that port operations must remain seamless and domestic trade must face no disruption from transshipment cargo.
Customs authorities will facilitate the auction of stuck-up containers within one month, while terminal operators dispose of surplus items like wooden pallets and unused equipment in the same period. Rationalized reserve prices for mixed lots will speed up auctions.
The Federal Board of Revenue (FBR) will separately permit shipping companies to remove and destroy abandoned containers in accordance with existing customs regulations.
Officials reported that stuck-up containers and surplus materials can be relocated to sites including Sky Media Terminal, Al-Hamd Terminal, Northern Bypass, and other off-dock facilities.
The government earlier amended transshipment rules through an SRO, allowing cargo storage at off-dock terminals. Storage capacity at these terminals was increased to 60,000 containers to ease congestion and reduce turnaround times.
The Numbers Behind the Congestion
The congestion problem stems directly from an unprecedented cargo surge. Karachi Port received 8,000 containers and dispatched 3,500, leaving a balance of 4,500 containers in the port. Port Qasim, 35 kilometres east of Karachi, currently holds 3,485 containers — reflecting spillover activity as Karachi approaches operational capacity.
KPT data shows that three private terminals — Karachi Gateway Terminal Limited (KGTL), Karachi International Container Terminal (KICT), and South Asia Pakistan Terminal Limited (SAPTL) — handled more than 8,300 TEUs since 1 March. SAPTL led with 5,286 TEUs, KICT processed 1,827 TEUs, and KGTL handled 1,200 TEUs.
| Terminal | Operator | TEUs Handled (March 2026) |
| SAPTL (South Asia Pakistan Terminal) | Hutchison Ports | 5,286 |
| KICT (Karachi International Container Terminal) | Hutchison Ports | 1,827 |
| KGTL (Karachi Gateway Terminal) | AD Ports Group | 1,200 |
| KPT Total | 8,313 | |
| Port Qasim (QICT) | Dubai Ports World | 3,485 |
Source: Karachi Port Trust weekly data, March 2026.
Why Transshipment Exploded — The Hormuz Factor
The directive comes as Pakistan’s ports, particularly in Karachi, have seen increased cargo volumes due to the war in Iran that began on 28 February 2026, disrupting shipping through the Strait of Hormuz, raising trade and energy costs, and forcing vessels to reroute.
Syed Tahir Hussain, Secretary-General of the Pakistan Ship’s Agents Association (PSAA) — which represents foreign shipping lines including Maersk, COSCO, and around 50 others — confirmed the diversion of transshipment cargo has created port congestion. “Two or three ships have filled storage,” Hussain told Arab News. “There is no more space left.”
Hussain added that Pakistan now holds a unique competitive window: “Previously, we were not even in the race. Now, due to the Middle East disruption, Pakistan has a unique opportunity as ships are looking for nearby alternatives and Pakistan is the closest.”
New Transshipment Approvals — What the Government Cleared
Separately, on Thursday, the government approved a broader package of transshipment measures on the recommendations of the PM’s high-level committee headed by Chaudhry. The approvals cover bulk and break-bulk cargo under transshipment arrangements — expected to attract new shipping lines and facilitate regional movement of grains, coal, minerals, and project cargo — as well as the transshipment of vehicles through roll-on/roll-off (RoRo) vessels, covering cars, SUVs, and other wheeled cargo.
The government has also permitted the handling of less than container load (LCL) cargo under transshipment operations, enabling consolidation and redistribution of smaller consignments and offering greater flexibility to global freight forwarders.
The National Logistics Corporation reduced scanning charges by 50%, with potential discounts of up to 75% for vessels carrying full transshipment cargo. Terminal operators cut scanning charges by 25%, and port fees for transshipment vessels have been reduced by up to 60%.
Chaudhry said: “Pakistan must seize emerging regional opportunities by adopting a forward-looking framework to sustain and expand our ports’ potential.”
Unzilla Shaikh, Investment Analyst at Arif Habib Limited, offered a measured view. “From an economic standpoint, while this activity does generate some incremental port-related income through standard handling and dues, there are no additional windfall gains,” she told Arab News.
Khurram Aziz Khan, CEO of KGTL, said at the launch of a new Karachi-UAE feeder service on 11 March: “By linking Karachi directly with major UAE transshipment hubs, this service provides importers and exporters with reliable access to global shipping networks while reinforcing the role of Karachi Gateway Terminal as a key gateway for international trade.”
What This Means for Pakistan’s Importers and Exporters
Karachi Port congestion directly hits Pakistan’s import-dependent businesses — from textile manufacturers awaiting raw material containers to consumer goods importers. Every additional day a container sits stuck at port costs importers demurrage charges and delays production cycles, feeding directly into business costs and ultimately consumer prices. The 30-day plan to clear stuck containers and auction abandoned cargo will release port capacity and, if executed on schedule, help restore normal vessel turnaround times for Pakistan’s exporters — whose competitiveness against Indian and Bangladeshi rivals depends critically on fast, low-cost port clearance.